Saab has signed a new agreement with Pang Da Automobile and Zhejiang Youngman Lotus Automobile. Full coverage inside

Saab has signed a new agreement with Pang Da Automobile and Zhejiang Youngman Lotus Automobile.

The specifics are somewhat technical, but Zhejiang Youngman will invest roughly €136 ($195) million to take a 29.9 percent stake in Saab's parent company - Spyker Cars NV. Likewise, Pang Da will increase their previously announced investment to approximately €109 ($157) million. This will give them a 24 percent stake in Spyker.

All told, the two companies will give Spyker €245 ($352) million in exchange for the rights to produce and distribute Saab vehicles in China.

According to Victor Muller, CEO of Spyker and Saab Automobile, "We are convinced that Youngman represents all the qualities required to make Saab and the joint ventures a success. This MOU [memorandum of understanding] not only shows the belief of Pang Da and Youngman in our products for the Chinese market, it also is a step that significantly strengthens Saab's financial position and would secure the mid and long term financing of Saab Automobile."

Despite the announcement, the agreement still faces approval from "certain governmental agencies and third parties."